ILAB 33 – Brett Owens, 3 Recession Proof REITs to Buy Now

Brett Owens, 3 Recession Proof REITs to Buy Now

Brett Owens is the Chief Investment Strategist of Contrarian Outlook and a regular contributor to Forbes investment column. In the flagship publication the Contrarian Income Report,  their focus is secure yields of 6% or better with price upside. As the name implies, they take a contrarian approach to the markets in order to find value (in the form of secure high yield) where headline-focused investors often miss out. Brett was recently featured on CNBC Asia where they discussed new infrastructure plays and joined us on the podcasts to do a dedicated episode on REITs after we read his article in Forbes 3 Recession Proof REITs to Buy Now.

Listen to ILAB 33 on iTunes here or subscribe on your favorite podcast app.

iTunes Podcast

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ILAB 32 Show Notes


Brett’s Twitter: https://twitter.com/brettowens
Forbes Article – 3 Recession Proof REITs to Buy Now

**Free Dividend Stock Report from Brett7 Great Dividend Stocks for a Secure Retirement

Where are we:

Sam – Playa Del Carmen, Mexico
Brett – Sacramento, California

REIT Recommendations

OHI chart

PSA chart

 

Recommended:

Money Master The Game – Tony Robbins

Fundrise – unaccredited invested can invested $1,000 into private eREITS

PeerSteet – get a 1% yeild bump with this link

Discussed:

Episode 12 – Ben Miller: CEO of Fundrise on How Real Estate Investing is Changing

Episode 07 – Kevin Shea: Building Hong Kong’s Biggest Self Storage Business

 **Free Dividend Stock Report from Brett7 Great Dividend Stocks for a Secure Retirement

Show Notes:

04:15 – Californian wine and day trips
06:00 – REIT fundamentals
07:18 – Acquire physical property
11:40 – Recession proof REITS
14:00 – Leverage levels
19:05 – Rising interest
20:30 – Long-term dividend growth
23:31 – When making an investment
26:00 – Getting started
29:01  – Reality income
30:35 – Paying monthly dividend
31:45 – Public storage
33:50 – National retail properties
35:35 – Sabra health care
39:31 – Raising interest rate
40:50 – Brett’s personal portfolio
43:00 – Private REIT offering
44:45 – 7 dividend growth stocks
54:22 – IRA & REIT fund changes
57:00 – Capped investing funds
1:01:00 – Buying REITs

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Copyright 2016. All rights reserved. Read our disclaimer here.

 


  • Hi Sam and Johnny, thanks for this episode. I chanced upon your podcast when Todd Tressider shared his interview with you guys. I downloaded this episode because it is a pet subject of mine. There are so much nuances discussed on why specific segment of REITs are more defensive.

    I listened that you have been in Singapore and have browsed our set of REITs. On my blog, I came up with a Dividend Stock Tracker that updates the prices of popular Singapore Dividend Stocks including REITs. You can see the dividend yield gyrate as prices change > http://www.investmentmoats.com/DividendScreener/DividendScreener.php

    I think the advantage for a foreign investor like yourself is that there is no dividend withholding tax for you (unless you have packaged as a partnership, in that case the withholding tax is 10%) This is incomparison to USA where you need to put in a taxable account.

    Im sorry to hear about the capital gains being taxed as ordinary income. I didn’t realize that as a Singaporean as well.

    While some of the REITs is high yield (9%) they are mainly industrial REITs. One thing to note. Singapore is land scarce and many of these reits are leasehold with 30-60 year land lease. This will affect the valuation and you need a higher yield to make up for this as the land lease will run out.

    I realize that if a REIT have a high dividend yield in normal time (not recession or depressed prices) it may baked in some uncertainty you are unaware.

    The best REIT is like what Brett said those that grow. the dividend yield is just to ensure the share price stays high. this reduces the cost of capital. George Soros wrote a very good piece on REITs in the 1970s. here is the link > https://thelongshorttrader.com/2012/09/25/the-alchemy-of-reits/

    Cheers.